Suppose That Last Year $1 U

question 23

Multiple Choice

Suppose that last year $1 U.S. exchanged for 1.2 euros. If this year $1 exchanges for 1.1 euros, then we can conclude that

• A) the dollar is weaker this year than it was last year and this will cause the United States' short-run aggregate supply (SRAS) curve to shift to the left.
• B) the dollar is weaker this year than it was last year and this will cause the United States' short-run aggregate supply (SRAS) to shift to the right.
• C) the dollar is stronger this year than it was last year and this will cause the United States' short-run aggregate supply (SRAS) curve to shift to the left.
• D) the dollar is stronger this year than it was last year and this will cause the United States' short-run aggregate supply (SRAS) curve to shift to the right.

Recognize the importance of investment in accumulating capital goods.

Understand the scientific method's application to economics and its relevance in studying human behavior.

Understand the broad categories of economic resources and their examples.

Comprehend the concepts of marginal analysis and opportunity costs in economic decision-making.

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Definitions:

Property Income

Earnings derived from property ownership, such as rents, interest on loans, and dividends from investments.

Personal Income

The total income received by individuals, including wages, salaries, government benefits, and income from investments.

Wage Supplements

Additional financial benefits provided to employees on top of their regular wages, which could include bonuses, health insurance, or retirement benefits.

Personal Income

The total earnings of an individual from wages, investment interests, and other sources before any deductions or taxes.